The Federal Board of Revenue has directed the field formations to impose penalty/default surcharge in cases where references have been filed in courts and stay granted in reference applications has exceeded the period of six months. Sources told Business Recorder here on Saturday that the huge amounts of arrears have been stuck-up in courts.
There are two kinds of cases pending at the level of judicial fora. As far as stuck up arrears are concerned, the first category of cases is those where writ petitions have been filed in courts. The second category is where references have been filed in courts. In case of references, the FBR has directed the field formations to impose default surcharge or penalty where stay granted in reference applications have exceeded six months, sources added.
During the last Chief Commissioners Conference, it was noted that a huge arrears is stuck up in court cases due to stay granted by various appellate fora. FBR Member (Legal) apprised the participants that in Writ Petition stay cases does not vacate automatically after expiry of six months. Hence, request for vacation of stay in all such cases may be made. In Reference cases stay vacates automatically and recovery in such cases can be made.
After discussion between the tax authorities and the Chief Commissioners of the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs), it was decided that the finalisation of legal proceedings of cases having optimal revenue potential to be ensured. Secondly, the courts shall be approached for vacation of stays in such cases. Thirdly, finalisation of all stuck up arrears cases to be perused and penalty imposed where applicable, the FBR added.